Market Comment – May

The residential rental market two months on from February’s event has been through quite a cycle with current residential rentals available on Trade Me, approx 1400, which is above pre earthquake numbers.

Trade Me is one of the parameters we use to gauge the available rental supply, along with our own statistics. As in sales it requires a deeper analysis of numbers to portray the real picture.

Many of the properties available in Christchurch are not the type or location that potential tenants are seeking.

Post earthquake we saw a huge demand with available property numbers dropping to record lows.

In the last month we have experienced a slowing of demand.

As we state in many of our communications “well presented properties in sought after locations are always in good demand”

Residential Sales

The property market two months on from 22 February events is showing a gradual return of sales activity in Canterbury.

To obtain a truer picture of what is happening in the residential market place it can be catagorised into 3 distinct areas.

1. The Hill, Central and Eastern suburbs: 40 sales in March 2011 compared with 231 in March 2010.

2. The North and Western parts of the city: 153 sales in March 2011 compared with 364 in March 2010.

3. The Selwyn District: 56 sales in March 2011 compared with 37 in March 2010.

This clearly illustrates the varying levels of sales activity.

As stated in our previous report, sales volumes within many parts of Christchurch City are below levels to confidently define trends.

We reiterate our earlier comments on “Where the market is heading to?” We do not have a crystal ball. There are factors of de-population housing stock destroyed and the effect of demolition and reconstruction labour force arriving into the city, will determine market trends.

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